Vertex reported total first quarter 2012 revenues of approximately $439
million, including net product revenues of approximately $357 million
from INCIVEK® (telaprevir) and approximately $18 million from
KALYDECOTM (ivacaftor). Royalty revenues related to the sale
of INCIVO® in Europe by our collaborator were approximately
$33 million. The company reported GAAP net income of approximately $92
million and non-GAAP net income of approximately $119 million, or $0.43
and $0.55 per diluted share, respectively. Additionally, Vertex today
announced that it expects to obtain data from multiple ongoing clinical
trials beginning in the second quarter, including data from a Phase 2
study evaluating KALYDECO in combination with VX-809 in people with the
most common type of cystic fibrosis (CF) and the first viral kinetic
data of the nucleotide hepatitis C virus (HCV) polymerase inhibitors
ALS-2220 and ALS-2158.

"Since January, approximately 600 people with cystic fibrosis have
started treatment with KALYDECO in the U.S., underscoring the importance
of this new medicine to the CF community and further demonstrating our
ability to develop and launch transformative new medicines," said
Jeffrey Leiden, M.D., Ph.D., President and Chief Executive Officer of
Vertex. "With INCIVEK, we continue to treat thousands of people with
hepatitis C, and we are highly encouraged by the early success seen with
this medicine outside the U.S., where our collaborator Janssen has
attained a market-leading position in Europe and availability of INCIVO
in more than 15 countries around the world.

"The success of our first two approved medicines provides for continued
investment in our pipeline, where multiple ongoing clinical studies will
begin to generate important new data beginning this quarter. We're also
preparing to initiate Phase 2b studies of all-oral, short-duration
treatment regimens for hepatitis C and of our JAK3 inhibitor VX-509 for
rheumatoid arthritis, as well as pivotal studies of KALYDECO in people
with types of cystic fibrosis not studied in earlier trials," concluded
Dr. Leiden.

Cystic Fibrosis

KALYDECO Launch: Vertextoday announced that
approximately 600 people have started treatment with KALYDECO
following the FDA approval on January 31. KALYDECO is approved in the
U.S. for people with cystic fibrosis ages 6 and older who have at
least one copy of the G551D mutation in the cystic fibrosis
transmembrane conductance regulator (CFTR) gene.

European Marketing Authorization Application: In December, the
European Medicines Agency (EMA) validated Vertex's marketing
authorization application (MAA) for KALYDECO. The acceptance of the
MAA marked the start of the regulatory review process by the Committee
for Medicinal Products for Human Use (CHMP). Vertex expects to obtain
approval of KALYDECO in Europe in the third quarter of 2012.

Studies of KALYDECO in other CFTR Mutations: In 2012, Vertex
plans to begin three additional pivotal studies of KALYDECO that will
enroll people with CF who have certain CFTR mutations that were
not evaluated in the previous Phase 3 studies, as well as children
with CF as young as two years of age. The first two of these studies
are expected to begin in the middle of the year and will include a
study of people with CF who have at least one copy of the R117H CFTR
mutation, which is present in approximately three percent of
people with CF in the U.S., and a study in people with CF who have
other CFTR gating mutations where CFTR proteins are present at
the cell surface but do not function properly. G551D is the most
common gating mutation, present in approximately four percent of
people with CF. The remaining gating mutations to be evaluated in the
second study account for an additional approximately one percent of
people with CF in the U.S. Pending final feedback from regulatory
agencies, a third study is planned for later this year in children
with CF as young as two years of age who have gating mutations.

Combination Study in Most Common Type of CF: Vertex is also
conducting a Phase 2 study of the CFTR corrector VX-809 dosed in
combination with KALYDECO in people with the most common CFTR mutation,
known as F508del. Final data from this study are expected in mid-2012.
The study enrolled people with two copies of the F508del mutation
(homozygotes) and also included the first evaluation of KALYDECO
combined with VX-809 in people with one copy of the F508del mutation
and one copy of certain non-gating mutations (heterozygotes). A Phase
2 study of VX-661, a second CFTR corrector, dosed in combination with
KALYDECO is also ongoing, with data expected in the second half of
2012.

Hepatitis C

Global Availability of Telaprevir: Telaprevir(INCIVEK,
INCIVO, TELAVIC) is now available in countries in North America,
Europe, South America and the Far East. Vertex's collaborator,
Janssen, is marketing telaprevir in more than 15 countries in Europe
and other regions as INCIVO. Vertex's collaborator Mitsubishi Tanabe
Pharma markets this medicine in Japan as TELAVIC®.

Viral Kinetic Studies of Two Alios Nucleotides: Seven-dayviral
kinetic studies of the nucleotide analogues ALS-2200 and ALS-2158 are
ongoing in people with hepatitis C. The first data from these studies
are expected in the second quarter of 2012. If successful, Vertex
plans to begin Phase 2 studies in the second half of 2012 to evaluate
combination regimens of ALS-2200 or ALS-2158 with INCIVEK or VX-222
with or without ribavirin, as well as other potential interferon-free
combination regimens.

Phase 2b Study of 12-week All-Oral Regimen of INCIVEK, VX-222 and
Ribavirin: In the second quarter of 2012, Vertex plans to begin an
approximately 100-person Phase 2b study of an all-oral treatment
regimen of INCIVEK, VX-222 and ribavirin in people with genotype 1
hepatitis C. The study will evaluate treatment regimens as short as 12
weeks. If successful, data from this study will be used to design a
Phase 3 program with the goal of submitting a New Drug Application
(NDA) to the U.S. Food and Drug Administration (FDA) for Vertex's
first interferon-free regimen for genotype 1 (1a and 1b) patients as
early as the end of 2014, pending regulatory discussions.

Rheumatoid Arthritis

Initiation of Phase 2b Study: In May, Vertex plans to initiate
a global Phase 2b study of the JAK3 inhibitor VX-509 in people with
moderate to severe rheumatoid arthritis (RA) that will evaluate once
and twice-daily dosing in combination with methotrexate. The six-month
study is expected to enroll approximately 350 people.

Flu

Ongoing Phase 2 Study of VX-787: Vertex recently initiated a
Phase 2, randomized, double-blind, placebo-controlled study of VX-787
that is expected to enroll approximately 140 healthy volunteers who
will be infected with live influenza virus as part of this study. The
primary efficacy endpoint of the study is the reduction in viral
shedding. Data from the study are expected in the second half of 2012.
VX-787 is an investigational medicine that is designed to treat
influenza A, including recent H1 (pandemic) and H5 (avian) influenza
strains.

First Quarter 2012 Financial Results

"With the launch of KALYDECO earlier this year and the global
availability of INCIVEK and INCIVO, Vertex has begun to generate
significant revenues from approved medicines worldwide," said Ian Smith,
Executive Vice President and Chief Financial Officer for Vertex. "Our
total first quarter revenues of approximately $439 million support
reinvestment in our pipeline, which may lead to future medicines for
people with diseases such as hepatitis C, cystic fibrosis, influenza and
rheumatoid arthritis, while generating significant earnings, operating
margins and cashflow for our business."

Total Revenues: Totalrevenues for the first quarter of
2012 were $438.7 million, compared with $73.7 million in total revenues
for the first quarter of 2011. Key components of total revenues for the
first quarter 2012 were:

Net Product Revenues from INCIVEK: Net product revenues from
INCIVEK for the first quarter of 2012 were $356.9 million.

Net Product Revenues from KALYDECO: Net product revenues from
KALYDECO, which was approved on January 31, 2012, were $18.4 million
in the first quarter of 2012.

Royalty Revenues: Vertex recognized $39.0 million in royalty
revenues in the first quarter of 2012, including $32.9 million in
INCIVO royalty revenues from our collaborator Johnson and Johnson.

Collaborative Revenues: Vertex recognized $24.4 million in
collaborative revenues in the first quarter of 2012.

Research and Development (R&D) Expenses: R&D expenses for the
first quarter of 2012 were $196.4 million, including $17.2 million of
Vertex stock-based compensation expense and $4.0 million in Alios
expenses related to the accounting for the collaboration with Vertex,
compared to $158.6 million for the first quarter of 2011, including
$18.5 million of stock-based compensation expense. The increase in
Vertex's R&D investment is principally due to development activities
related to ongoing and planned clinical trials in influenza, RA,
hepatitis C and CF.

Sales, general and administrative (SG&A) expenses: SG&A
expenses for the first quarter of 2012 were $111.1 million, including
$10.5 million of Vertex stock-based compensation expense and $1.1
million in Alios expenses related to the accounting for the
collaboration with Vertex, compared to $71.5 million for the first
quarter of 2011, including $9.3 million of stock-based compensation
expense. This increase reflects the expansion of the company's
commercial organization and costs related to the commercial launch of
KALYDECO in the U.S. and launch preparation activities for KALYDECO in
Europe.

GAAP Net Income (Loss) Attributable to Vertex: Vertex's GAAP net
income for the first quarter of 2012 was $91.6 million, or $0.43 per
diluted share. The GAAP net loss for the first quarter of 2011 was
($176.1) million, or ($0.87) per diluted share.

Non-GAAP Net Income (Loss) Attributable to Vertex: Vertex's
non-GAAP net income for the first quarter of 2012, was $118.6 million,
or $0.55 per diluted share. The non-GAAP net loss for the first quarter
of 2011 was ($183.9) million, or ($0.91) per diluted share.

2012 Financial Guidance

Vertex today reiterated its financial guidance, as provided on February
2, 2012.

Non-GAAP Financial Measures

In this press release, Vertex's financial results and financial guidance
are provided both in accordance with accounting principles generally
accepted in the United States (GAAP) and using certain non-GAAP
financial measures. In particular, Vertex provides its first quarter
2012 net income and first quarter 2011 net loss excluding stock-based
compensation expense, restructuring expense, any revenues and expenses
related to certain September 2009 financial transactions, and any items
related to Vertex's collaboration with Alios. These results are provided
as a complement to results provided in accordance with GAAP because
management believes these non-GAAP financial measures help indicate
underlying trends in the company's business, are important in comparing
current results with prior period results and provide additional
information regarding its financial position. Management also uses these
non-GAAP financial measures to establish budgets and operational goals
that are communicated internally and externally, and to manage the
company's business and to evaluate its performance. A reconciliation of
the other non-GAAP financial results to GAAP financial results is
included in the attached financial statements.

Vertex Pharmaceuticals Incorporated

First Quarter Results

Consolidated Statements of Operations Data

(in thousands, except per share amounts)

(unaudited)

Three Months Ended

March 31,

2012

2011

Revenues:

Product revenues, net

$375,375

$---

Royalty revenues

38,981

6,061

Collaborative revenues

24,381

67,601

Total revenues

438,737

73,662

Costs and expenses:

Cost of product revenues

25,918

---

Royalty expenses

13,293

2,666

Research and development expenses (R&D)

196,371

158,612

Sales, general & administrative expenses (SG&A)

111,146

71,523

Restructuring expense

360

760

Total costs and expenses

347,088

233,561

Income (loss) from operations

91,649

(159,899)

Net interest expense (Note 2)

(3,741)

(10,599)

Change in fair value of derivative instruments (Note 2)

---

(5,598)

Income (loss) before provision for income taxes

87,908

(176,096)

Provision for income taxes

32

---

Net income (loss)

87,876

(176,096)

Net loss attributable to noncontrolling interest (Note 1)

(3,714)

---

Net income (loss) attributable to Vertex

$91,590

$(176,096)

Net income (loss) per share attributable to Vertex common
shareholders:

Basic

$0.44

$(0.87)

Diluted

$0.43

$(0.87)

Shares used in per share calculations:

Basic

208,018

202,329

Diluted

219,264

202,329

Reconciliation of GAAP to Non-GAAP Financial Information

(in thousands, except per share amounts)

(unaudited)

Three Months Ended March 31, 2012

Adjustments

GAAP

Alios

Transaction

Stock-based

Compensation

Expense

September 2009

Financial

Transactions

Restructuring

Expense

Non-GAAP

Revenues

$

438,737

$

--

$

--

$

--

$

--

$

438,737

Operating costs and expenses

347,088

(5,086

)

(27,627

)

--

(360

)

314,015

Income from operations

91,649

5,086

27,627

--

360

124,722

Other income and expenses

(3,741

)

(62

)

--

--

--

(3,803

)

Income before provision for income taxes

87,908

5,024

27,627

--

360

120,919

Provision for income taxes

32

2,280

--

--

--

2,312

Net income

87,876

2,744

27,627

--

360

118,607

Net loss attributable to noncontrolling interest (Alios)

(3,714

)

3,714

--

--

--

--

Net income attributable to Vertex

$

91,590

$

(970

)

$

27,627

$

--

$

360

$

118,607

Net income per share attributable to Vertex common shareholders:

Basic

$

0.44

$

0.56

Diluted

$

0.43

$

0.55

Shares used in per share calculations:

Basic

208,018

208,018

Diluted

219,264

219,264

Three Months Ended March 31, 2011

Adjustments

GAAP

Alios

Transaction

Stock-based

Compensation

Expense

September 2009

Financial

Transactions

Restructuring

Expense

Non-GAAP

Revenues

$

73,662

$

--

$

--

$

(50,000

)

$

--

$

23,662

Operating costs and expenses

233,561

--

(27,879

)

--

(760

)

204,922

Loss from operations

(159,899

)

--

27,879

(50,000

)

760

(181,260

)

Other income and expenses

(16,197

)

--

--

13,532

--

(2,665

)

Net loss attributable to Vertex

$

(176,096

)

$

--

$

27,879

$

(36,468

)

$

760

$

(183,925

)

Net loss per share attributable to Vertex common shareholders:

Basic

$

(0.87

)

$

(0.91

)

Diluted

$

(0.87

)

$

(0.91

)

Shares used in per share calculations:

Basic

202,329

202,329

Diluted

202,329

202,329

Condensed Consolidated Balance Sheets Data

(in thousands)

(unaudited)

March 31,

2012

December 31,

2011

Assets

Cash, cash equivalents and marketable securities

$980,867

$968,922

Restricted cash and cash equivalents (Alios) (Note 1)

58,017

51,878

Accounts receivable, net

232,228

183,135

Inventories

129,595

112,430

Other current assets

35,407

14,889

Property and equipment, net

170,331

133,176

Restricted cash

34,090

34,090

Intangible assets (Note 3)

663,500

663,500

Goodwill (Note 3)

30,992

30,992

Other non-current assets

10,816

11,268

Total assets

$2,345,843

$2,204,280

Liabilities and Shareholders' Equity

Other liabilities

$426,687

$405,616

Accrued restructuring expense

25,473

26,313

Deferred tax liability (Note 3)

241,426

243,707

Deferred revenues

146,680

163,132

Convertible notes (due 2015)

400,000

400,000

Noncontrolling interest (Alios) (Note 1)

175,079

178,669

Shareholders' equity (Vertex)

930,498

786,843

Total liabilities and shareholders' equity

$2,345,843

$2,204,280

Common shares outstanding

210,863

209,304

Note 1: The company has consolidated the financial statements of
its collaborator Alios BioPharma, Inc., as of March 31, 2012 and
December 31, 2011, and for the three months ended March 31, 2012. The
company's interest and obligations with respect to Alios' assets and
liabilities are limited to those accorded to the company in its
collaboration agreement with Alios. Restricted cash and cash equivalents
(Alios) reflects Alios' cash and cash equivalents, which Vertex does not
have any interest in and which will not be used to fund the
collaboration. Increases (decreases) in the fair value of contingent
milestone and royalty payments result in gains (losses) attributable to
the noncontrolling interest (Alios), which decrease (increase) net
income attributable to Vertex on the Consolidated Statements of
Operations Data.

Note 2: In the first quarter of 2011, a portion of the
collaborative revenues, the change in fair value of derivative
instruments and a portion of the net interest expense reflected in the
Consolidated Statements of Operations Data relate to two financial
transactions that the company entered into in September 2009 relating to
milestone payments under the company's collaboration agreement with
Janssen Pharmaceutica, N.V. In the first quarter of 2011, the company
earned $50.0 million in milestone payments from its collaborator,
Janssen, which are reflected in total collaborative revenues in the
Consolidated Statements of Operations Data.

Note 3: The intangible assets, the goodwill and the deferred tax
liability reflected in the Condensed Consolidated Balance Sheets Data
relate to the company's acquisition of ViroChem Pharma Inc. in 2009 and
the company's collaboration agreement with Alios in June 2011.

About Vertex

Vertex creates new possibilities in medicine. Our team discovers,
develops and commercializes innovative therapies so people with serious
diseases can lead better lives.

Vertex scientists and our collaborators are working on new medicines to
cure or significantly advance the treatment of hepatitis C, cystic
fibrosis, rheumatoid arthritis, epilepsy and other life-threatening
diseases.

Founded more than 20 years ago in Cambridge, MA, we now have ongoing
worldwide research programs and sites in the U.S., U.K. and Canada.
Today, Vertex has more than 2,000 employees around the world, and Science
magazine named Vertex number one on its 2011 list of Top Employers in
the life sciences.

KALYDECOTM is a prescription medicine used for the treatment
of cystic fibrosis (CF) in patients ages 6 years and older who have a
certain mutation in their CFTR gene called the G551D mutation.

KALYDECO is not for use in people with CF due to other mutations in the CFTR
gene. It is not effective in CF patients with two copies of the F508del
mutation (F508del/F508del) in the CFTR gene.

It is not known if KALYDECO is safe and effective in children under 6
years of age.

KALYDECO should not be used with certain medicines, including the
antibiotics rifampin and rifabutin; seizure medications (phenobarbital,
carbamazepine, or phenytoin); and the herbal supplement St. John's Wort.

KALYDECO can cause serious side effects. High liver enzymes in the blood
have occurred in patients taking KALYDECO. Regular assessment is
recommended.

INCIVEK® (telaprevir) is a prescription medicine used
with the medicines peginterferon alfa and ribavirin to treat chronic
(lasting a long time) hepatitis C genotype 1 infection in adults with
stable liver problems, who have not been treated before or who have
failed previous treatment. It is not known if INCIVEK is safe and
effective in children under 18 years of age.

Important Safety Information

INCIVEK should always be taken in combination with peginterferon alfa
and ribavirin. Ribavirin may cause birth defects or death of an unborn
baby. Therefore, a patient should not take INCIVEK combination treatment
if she is pregnant or may become pregnant, or if he is a man with a
sexual partner who is pregnant. Patients must use two forms of effective
birth control during treatment and for the 6 months after treatment with
these medicines. Hormonal forms of birth control, including birth
control pills, vaginal rings, implants or injections, may not work
during treatment with INCIVEK.

INCIVEK and other medicines can affect each other and can also cause
side effects that can be serious or life threatening. There are certain
medicines patients cannot take with INCIVEK combination treatment.
Patients should tell their healthcare providers about all the medicines
they take, including prescription and non-prescription medicines,
vitamins and herbal supplements.

INCIVEK can cause serious side effects including skin reactions, rash
and anemia that can be severe. The most common side effects of INCIVEK
include itching, nausea, diarrhea, vomiting, anal or rectal problems,
taste changes and tiredness. There are other possible side effects of
INCIVEK, and side effects associated with peginterferon alfa and
ribavirin also apply to INCIVEK combination treatment. Patients should
tell their healthcare providers about any side effect that bothers them
or doesn't go away.

Please see full Prescribing Information for INCIVEK including the
Medication Guide, available at www.INCIVEK.com.

Special Note Regarding Forward-looking Statements

This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995, including Dr. Leiden's
statements in the third and fourth paragraphs of this press release, Mr.
Smith's statements in the paragraph following the caption "First Quarter
2012 Financial Results," the information provided under the caption
"2012 Financial Guidance" and statements regarding (i) multiple ongoing
clinical trials generating data beginning in the second quarter of 2012;
(ii) the expected timing of data from (A) studies of VX-809 and VX-661,
in each case dosed in combination with KALYDECO, (B) studies of ALS-2200
and ALS-2158 and (C) studies of VX-787; (iii) the plans to conduct
additional studies of KALYDECO, a Phase 2b study of VX-222, INCIVEK and
ribavirin, Phase 2 studies of ALS-2200 or ALS-2158 and a global Phase 2b
study of VX-509; and (iv) the expected timing of an approval of KALYDECO
in Europe. While Vertex believes the forward-looking statements
contained in this press release are accurate, there are a number of
factors that could cause actual events or results to differ materially
from those indicated by such forward-looking statements. Those risks and
uncertainties include, among other things, that the outcomes for each of
Vertex's ongoing and planned clinical trials and studies may not be
favorable, that the company's 2012 financial guidance may be incorrect
(including because one or more of the company's assumptions underlying
its revenue or expense expectations may not be realized) and other risks
listed under Risk Factors in Vertex's annual report and quarterly
reports filed with the Securities and Exchange Commission and available
through the company's website at www.vrtx.com.
Vertex disclaims any obligation to update the information contained in
this press release as new information becomes available.

Conference Call Information

Vertex will host a conference call and webcast today, April 26, 2012 at
5:00 p.m. ET to review financial results and recent developments. The
conference call will be webcast live, and a link to the webcast may be
accessed from the 'Events & Presentations' page of Vertex's website at www.vrtx.com.

To listen to the live call on the telephone, dial 1-877-250-8889 (United
States and Canada) or 1-720-545-0001 (International). To ensure a timely
connection, it is recommended that users register at least 15 minutes
prior to the scheduled webcast.

The conference ID number for the live call and replay is 63676268.

The call will be available for replay via telephone commencing April 26,
2012 at 8:00 p.m. ET running through 5:00 p.m. ET on May 10, 2012. The
replay phone number for the United States and Canada is 1-855-859-2056.
The international replay number is 1-404-537-3406.

Following the live webcast, an archived version will be available on
Vertex's website until 5:00 p.m. ET on May 3, 2012. Vertex is also
providing a podcast MP3 file available for download on the Vertex
website at www.vrtx.com.